Advait Infratech Ltd IPO; Should you Invest?

Advait Infratech Limited initial IPO of 1,350,000 equity shares opens on Tuesday, 15^th September 2020. The Advait IPO plans to raise Rs. 6.89 crores.

Advait Infratech Company Profile

Advait Infratech established in the year 2010. The headquarter of the company is in Ahmadabad and operates in power infrastructure Industry.
The company has many verticles like power substation, power marketing, Turnkey Telecommunication projects, among others that help to meet the demand of the power sector.

Advait Infratech Limited has a broad range of client base which includes JSW energy, Siemens, Jindal steel & power, Cobra, NSG Group etc. The client strength of the company is more than 100 all over the world. Till September 2020, the total projects completed by the company are 100+.
Mr Shalin Seth and Mrs Rejal Seth are the promoters of the power infrastructure company.

Advait Infratech IPO Detail

IPO Date: Sep-15 to Sep-18, 2020
Issue size: 1,350,000 equity shares @Rs.10 each ( upto Rs.6.89 cr)
Fresh issue: 1,350,000 equity shares @Rs.10 each ( upto Rs.6.89 cr)
Face value: Rs.10 per equity share
Lot size: 2000 shares
IPO Price: Rs.51 per equity share
Retail Allocation: 50%
Listing At: BSE, SME

The net proceeds from the issue of Advait Infratech IPO will be used for:

• To meet general working capital requirement of the company. And
• For the general corporate expenses

Should you Invest?

The financial of last three financial years of the company is not good enough. Profit after tax in FY 2018 was Rs. 624.34 lakhs, it was Rs.249.02 lakhs in FY 2019, and it shows PAT of Rs. 130.67 for the last financial year.

Though the company operates in a high demanding area and the client base and presence of the company is also good. But, one can’t ignore the financial strength of any company before investing.
So, on the basis of its financial position till last financial year, we would suggest you to avoid the Advait Infratech IPO.